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  What Is Market Capitalization? — Why Company Size Matters More Than Share Price (Part 12) 3-Line Summary Market capitalization does not simply show what one share costs. It shows how much the market is valuing the entire company . Many beginners assume that a high share price means a big company and a low share price means a small one, but in practice market capitalization matters far more than share price when judging company size. If you understand market capitalization, you can better explain why two stocks with the same share price can represent completely different companies , and why large-cap, mid-cap, and small-cap stocks behave differently. Recommended Keywords market capitalization meaning, what is market cap, how to calculate market capitalization, share price vs market cap, large cap vs small cap, stock market basics, company size in stocks, how to read market cap, stock market terminology, beginner investing concepts Table of Contents Why Looking Only at Share Price...